Millennials- sometimes called Generation Y, defined demographically as ranging in age from 18-37, make up the largest U.S. population cohort to date. At 86 million strong (7% larger than Baby-Boomers), they will make up 30% of all retail sales by 2020.
The NPD Group, Inc. just released a report, “Winning the Fight For Millennial Shoppers”, stating that 81% of Millennials’ retail spending occurred in brick-and-mortar stores, compared to only 19 percent online. Another study released this month by Valassis revealed Millennial’s number one source for coupons and deals is the Newspaper at 51% with email coupon alerts a very close 2nd at 50%.
Millennials are, without a doubt, the most-digitally savvy demographic on Earth- consuming enormous amounts of content via their smartphones and tablets. But, if you are a retail marketer, you shouldn’t assume they won’t engage in or seek out what is considered to be more traditional marketing methods and channels. To illustrate, Barry Hogan, KDM Retail Specialist, bought his 24 year old daughter a Cincinnati Enquirer newspaper subscription for Christmas because she couldn’t afford it. He laughs, saying “she says it is the best present she ever got. She runs to the mailbox on the weekend to grab all the circular ads and coupons out of the paper and throws away the rest.” Scoring a good deal is a mission among Millennials.
"Every brand and retailer had better be re-positioning their offerings and shopping experience to cater to the generational onslaught of the millennials, soon to put to shame the once vaunted purchasing power of the boomers," said Robin Lewis, CEO of "The Robin Report" and co-author of "The New Rules of Retail."
The NPD study tracked shopping activity from May 2012 to April 2013. It also revealed further insight into what they want, which emphasizes why marketers should deploy an integrated or omni-channel marketing approach to reach the Millennials:
How Will You Attract the Millennial Shopper?
“Millennial shoppers have the lowest shopping conversion rate because they are the most selective as well as the most economically challenged. …[they] are the most elusive generation and the most challenging to keep engaged. In order to get more Millennial consumers in store, retailers need to understand how Millennials’ shopping habits differ from other generations. Previous generations were more easily impressed by marketing and advertising strategies. With this group you must have a strategy to grab their attention in- and out-of-store,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.
While every Millennial who walks into a retail store is loaded with apps ready to get the latest and greatest deals, they are still shopping in stores. What can brands and retailers be doing when it comes to things like in-store point-of-purchase (POP) signage? Or store layout? Millennials want a seamless shopping experience that’s more convenient, faster, and more memorable. They want a personalized shopping experience that’s not overwhelming and doesn’t overstep perceived boundaries of privacy.
To help retailers, consumer brands and designers better understand this generation aged 18 to 37, download this free whitepaper titled "Millennials: Numbers and Attributes" by Marian Salzman, CEO, Euro RSCG Worldwide.
KDM P.O.P. Solutions Group helps brands and retailers deliver the omni-channel marketing strategy, in-store. We design and print POP marketing materials and displays that help drive impulse decisions at the store level. We offer interactive technology to help shoppers connect with the brand’s online assets. Whether you’re advertising a product, promoting a loyalty program, or improving customer service, interactive features on your POP displays, such as QR codes, NFC chips, and Augmented Reality, can leverage mobile as an added value to help bridge the gap between the store aisle and your web presence. We also provide the design and execution of the retail experience including retail store decor, custom store fixtures, signage and graphics.
Put our retail industry expertise to work for you. To learn more, CONTACT US today.